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You are the most creative analyst for Saltwater Logistics Corp., and your admirers want to see you work your analytical magic once more. 2016 Actual 2017 Initial Results Forecast (748) (925) Taxes Addition to retained earnings $781 $516 Fixed operating costs except depreciation (850) (1,020) Net income $1,122 1,387 $20,400 Net sales $17,000 Number of common shares (millions) 20.0 20.0 $3,400 $4,080 Gross profit Earnings before interest and taxes $2,210 $2,652 Common dividends (606) (606) $1,870 $2,312 Earnings before taxes (16,320) Cost of goods sold (13,600) Dividends per share $30 $30 Interest (340) (340) Earnings per share $56 $69 (340) (408) Depreciation Which of the following are assumptions made by the initial income statement forecast? Check all that apply. The facility is not currently operating at full capacity. Additional external financing will be required by Saltwater Logistics Corp. The facility is currently operating at full capacity. No additional external financing will be required. N The forecasted increase in net sales is 20% O The assigned depreciation method has changed.

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